To support yourself through college, you’ve started a carpet cleaning business for the greater Moscow area. In November, your company cleaned 65 rugs using the following resources:
.To support yourself through college, you’ve started a carpet cleaning
business for the greater Moscow area. In November, your company cleaned 65 rugs using the following resources:
Labor 520 hours at $13 per hour
Solvent 100 gallons at $5 per gallon
Machine Rental 20 days at $50 per day
a. What is the labor productivity per labor dollar?
b. What is the multifactor productivity?
c. Because you’re a preferred client, the company that rents you the machines has decided to charge you $500 per month instead of by the day. Assuming the other factors and number of rugs cleaned do not change, what would be the percentage change in your multifactor productivity at the new machine rate?
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